Differences Between Spot, Margin, and Futures!
Spot Trading: The Most Basic Starting Point
You buy crypto at the current price and transfer it to your wallet. You have actual ownership. It is the safest and simplest method for long-term investors and beginners.
Margin Trading: Leverage to Increase Power
You grow your capital with borrowed funds. You can open larger positions, but your losses can also grow. Never trade on margin without using a stop-loss.
Futures Trading: Opportunities in Both Directions
You can aim to profit from both rises and falls. You trade with expiring or perpetual contracts and gain flexibility with leverage. Suitable for professional strategies.
When to Use Which?
Spot: Long-term investment or HODL
Margin: Short-term opportunity if there is a strong signal
Futures: Hedging or taking a directional position
How do you use them?